USD flows: USD marginally lower after GDP revision

The USD is trading a little lower after the revised Q4 GDP data, which came in slightly lower than the advance data at 3.2% annualised. However, other than the headline GDP number, most other aspects look to be on the strong side, with GDP sales, consumer spending, and the PCE and GDP deflators all a little higher than expected. The headline decline was due to a downward revision in inventories. There is therefore little reason to see the data as USD negative, and the initial dip should be corrected. But no major move likely as tomorrow’s January PCE deflator remains the most important number of the week for the Fed.